Colgate-Palmolive (India) Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Technical Trend Overview and Momentum Analysis

Recent technical assessments reveal that Colgate-Palmolive (India) Ltd’s trend has deteriorated from mildly bearish to outright bearish. The daily moving averages have turned bearish, indicating that the stock’s short-term price action is under pressure. The Bollinger Bands on both weekly and monthly charts are also bearish, suggesting increased volatility with a downward bias. Meanwhile, the KST (Know Sure Thing) indicator, a momentum oscillator, confirms bearish sentiment on both weekly and monthly timeframes.

The MACD (Moving Average Convergence Divergence) presents a mixed picture: while the weekly MACD remains mildly bullish, the monthly MACD is bearish. This divergence implies that although short-term momentum may be attempting a recovery, the longer-term trend remains negative. The RSI (Relative Strength Index) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory, which suggests the stock is neither overbought nor oversold at present.

On-Balance Volume (OBV), a volume-based indicator, is mildly bullish on both weekly and monthly scales, indicating that buying volume is slightly outweighing selling volume. However, this positive volume signal has yet to translate into a sustained price rally, as the price remains below key moving averages.

Price Action and Key Levels

Colgate-Palmolive (India) Ltd closed at ₹2,112.00, down marginally by 0.20% from the previous close of ₹2,116.20. The stock traded within a range of ₹2,110.10 to ₹2,153.35 during the day, showing limited intraday volatility. The 52-week high stands at ₹2,770.60, while the 52-week low is ₹2,030.75, placing the current price closer to the lower end of its annual range. This proximity to the yearly low underscores the bearish technical environment.

Daily moving averages, which act as dynamic support and resistance levels, are currently bearish, signalling that the stock is trading below its short-term average prices. This typically discourages momentum traders and may attract short sellers or cautious investors awaiting clearer signs of reversal.

Comparative Performance Against Sensex

When analysing Colgate-Palmolive’s returns relative to the benchmark Sensex, the stock has underperformed over the medium to long term. Year-to-date, the stock has gained 1.75%, while the Sensex has declined by 2.24%, indicating some resilience in the current calendar year. Over the past month, Colgate-Palmolive rose 1.00%, contrasting with the Sensex’s 2.49% fall, which suggests short-term relative strength.

However, over the one-year horizon, the stock has declined by 21.88%, significantly lagging the Sensex’s 6.44% gain. This underperformance highlights the challenges the company has faced amid broader market strength. Over three years, Colgate-Palmolive has delivered a 44.58% return, slightly outperforming the Sensex’s 36.94%, but over five and ten years, the stock’s returns of 32.74% and 147.80% respectively trail the Sensex’s 64.22% and 238.44% gains, reflecting a longer-term lag in capital appreciation.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment downgraded Colgate-Palmolive’s Mojo Grade from Strong Sell to Sell on 3 February 2026, with a current Mojo Score of 34.0. This reflects a cautious stance on the stock, driven by deteriorating technicals and subdued momentum. The Market Cap Grade remains low at 2, indicating limited market capitalisation strength relative to peers. The downgrade signals that the stock is not favoured for accumulation at present, and investors should exercise caution.

The downgrade aligns with the technical trend shift and the bearish signals from key indicators, reinforcing the view that downside risks remain elevated in the near term.

Technical Indicators in Detail

The weekly MACD’s mildly bullish stance suggests some short-term momentum attempts to stabilise, but the monthly MACD’s bearish reading confirms that the longer-term trend remains negative. The lack of RSI signals on both weekly and monthly charts indicates the stock is not in an extreme condition, which means there is room for further downside or sideways consolidation before a meaningful reversal.

Bollinger Bands’ bearish readings on weekly and monthly charts imply that the stock price is trending towards the lower band, often a sign of increased selling pressure and volatility. The daily moving averages being bearish further confirm that the stock is trading below its recent average prices, a negative technical sign.

The KST indicator’s bearish readings on both weekly and monthly timeframes reinforce the momentum weakness, while the Dow Theory shows no clear trend on weekly or monthly charts, suggesting indecision among market participants.

On-Balance Volume’s mildly bullish signals on weekly and monthly charts indicate that volume is not strongly confirming the price weakness, which could mean that some accumulation is occurring, but it is insufficient to reverse the bearish trend at this stage.

Investor Implications and Outlook

Given the current technical landscape, investors should approach Colgate-Palmolive (India) Ltd with caution. The bearish shift in trend, combined with weak moving averages and negative momentum indicators, suggests limited upside potential in the near term. The stock’s proximity to its 52-week low and underperformance relative to the Sensex over the past year further reinforce the cautious stance.

However, the mildly bullish weekly MACD and OBV signals indicate that some buyers remain active, which could provide a base for consolidation or a potential technical rebound if confirmed by stronger volume and price action. Investors with a longer-term horizon may consider monitoring for a sustained break above key moving averages and a positive shift in monthly MACD and Bollinger Bands before committing fresh capital.

In the context of the FMCG sector, which typically favours steady growth and defensive characteristics, Colgate-Palmolive’s current technical weakness may reflect company-specific challenges or broader sector rotation pressures. Comparing its performance and technicals with peers could provide additional insights for portfolio allocation decisions.

Summary

Colgate-Palmolive (India) Ltd’s technical parameters have shifted towards a bearish stance, with daily moving averages and Bollinger Bands signalling downside momentum. While some weekly indicators like MACD and OBV show mild bullishness, the overall trend remains negative, supported by a downgrade in Mojo Grade to Sell. The stock’s recent price action near its 52-week low and underperformance against the Sensex over one year highlight the challenges ahead. Investors should remain cautious and await clearer technical confirmation before increasing exposure.

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